Irish Tycoon Proposes Major UK Gas Storage Expansion

Core Insights - An Irish energy tycoon plans to build a new gas storage site in the Irish Sea, which would increase the UK's gas storage capacity by over 50% [1][2] - The project, backed by Snam, aims to address national security risks associated with gas supply and market volatility [1][2] - The UK currently has the lowest gas storage capacity in the G7, with only 12 days' worth of average winter gas demand stored [4] Project Details - The proposed gas storage facility will be located off the coast of Barrow-in-Furness and is part of an £830 million megaproject [1] - The facility is expected to store 1.4 billion cubic meters of gas, which could meet an additional six days of average demand [5] - The project could be operational within five years, pending regulatory approval and investor interest [5] Market Context - The UK relies heavily on natural gas, which provided 29% of its energy demand in 2024, down from a peak of 38% in 2022 [3] - The project is positioned to enhance the UK's energy grid resilience against the intermittency of renewable energy sources and fluctuations in gas prices [2] - The proposal may lead to increased competition in the gas storage market, particularly with Centrica, which operates the Rough storage site [6]